REC Ltd Q2FY23 reports flat net profits at Rs2,732 crore on the back of flat top line growth in the quarter

28 Oct 2022 , 08:26 AM

REC Ltd reported flat -0.92% lower total revenues for the September 2022 quarter on consolidated basis at Rs9,964cr.

Revenue increase was 53.2% in sequential terms. The revenues for the core power financing business for the quarter was lower in the quarter but there were gains coming from the fair value changes.

There was a 3-fold increase in the miscellaneous interest income in the quarter. Profits could have been much higher but for the deferred tax credits in the comparable quarters.

The negative cash from operations widened as much of the exchange translation gains were still unrealized in the quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 1.48% at Rs2,732cr and it was up 11.3% on sequential basis.

The lower interest income and higher interest expenses put pressure on the spreads of REC. There were also translation losses in the quarter compared to gains last year.

However, all this got offset by an over 80% fall in the impairment provisions for financial assets amidst improved asset quality. Net profit margins at 27.42% in Q2FY23 is higher compared to 26.77% in Q1FY22 but at 37.72% in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	REC Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 9,964.00	₹ 10,056.43	-0.92%	₹ 6,506.06	53.15%
Net Profit (Rs cr)	₹ 2,732.12	₹ 2,692.27	1.48%	₹ 2,454.16	11.33%
Diluted EPS (Rs)	₹ 10.38	₹ 10.22		₹ 9.19
Net Margins	27.42%	26.77%		37.72%